Medpace seeking $1B public offering: Reuters

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Cincinnati CRO Medpace is looking to float for more than $1 billion, according to reports from Reuters quoting people “familiar with the matter.”

The pharma services company has filed a secretive IPO form with the SEC--something allowed under new rules for certain companies--according to the sources, who told Reuters they wanted to remain anonymous.

The CRO’s filing does not guarantee that Medpace will go public, the people said, adding that it could still revise its plans depending on market conditions in the coming months.

The IPO market has been turbulent this past quarter with a number of companies--notably those in the biotech space--dropping or discounting their offerings due to tough market conditions. On the flipside however, VC raises for the life sciences have enjoyed a boom.

Earlier this month similar reports also made by Reuters came out suggesting that Burlington, MA-based CRO inVentiv is seeking a $500 million IPO.

Medpace had annual earnings before EBITDA of around $100 million, the sources said, adding that the company is known for having some of the highest profit margins in its industry.

Medpace is owned by European private equity firm Cinven, which bought Medpace from fellow equity firm CCMP Capital Advisors back in 2014 for around $900 million. Both companies have declined to comment on the rumors.

Medpace provides management services to the R&D departments of pharma, biotech and medical device clients to help plan and oversee their clinical trials. Established in 1992, the CRO is headquartered in Cincinnati, OH and has global operations in over 45 countries, with an increasing focus on European markets.

-check out Reuters story